Registered Education Savings Plans: A List of Benefits
Because many, many parents care for their children’s future, they are starting the RESP or more commonly know as the registered education savings plan. This registered education savings plan can ensure your child’s brighter future in education so you should definitely get this RESP. If you decide to try registered education savings plan, then you will begin to see all the benefits it will give your child in the future; let us now look at some of the benefits that you will obtain.
You child’s future education in really important and then nice thing about this registered education savings plan is that you can save a lot of money. There is ‘saving’ in registered education savings plan and this is what they are really all about – so you will be able to ‘save’ for the future of your child’s education. Usually when children grow up and are ready to go to school, most parents will not know where to get the money for school fees and charges. Now you do not have to worry about what money you should use because you already saved enough money for your child education when it comes time to pay the fees.
The next benefit of these registered education savings plan is that you can only give little amount of money at a time and if you start earlier, you can put smaller amounts of money. Because there is no minimum to these registered education savings plans, you can put in any amount of money that you are feeling to give – you can put a big amount or a small amount. This will definitely encourage the people to do it because there is no amount required on which they have to place every month. So the budget for what you put in your registered education savings plan can really vary depending on what you can pay for.
And finally, registered education savings plan is beneficial because you will not have to pay taxes while the money is still inside the bank. The only time you will have to pay taxes is when you withdraw the money from the bank. These taxes are usually really small because you are dealing with the education of children. So you no longer need to always worry about the high taxes that you will need to give when putting your money in the bank for registered education savings plan because the RESP does not require any tax.
Of course these are not all the benefits that you get with registered education savings plans; there are a lot more but we just covered three of the best benefits. If you get registered education savings plans for you children, you can expect a brighter future for you child.
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